Consolidation, closure, and controversies have shaped the advertising industry in 2024, reflecting seismic shifts and persistent challenges for agencies worldwide. From mega-mergers to plagiarism disputes, the year has seen significant events that will have lasting repercussions.

The Big Consolidation: Omnicom Acquires IPG
Omnicom’s acquisition of Interpublic Group (IPG) sent shockwaves through the advertising world, signaling a massive shake-up in the holding company hierarchy. With a combined revenue of $25.6 billion in 2023, the newly formed entity now surpasses rival WPP (which reported $18.89 billion) to become a formidable player.

The merged entity, retaining the Omnicom name, brings together an enviable roster of agencies including McCann Worldgroup, FCB Group, DDB Mudra, TBWA, BBDO, and the MullenLowe Lintas Group. In India, this consolidation challenges WPP’s creative dominance shaped by Ogilvy, VML (formerly JWT), and 82.5 Communications.

On the media side, the combined power of Omnicom’s OMD and PHD with IPG’s Mediabrands and Interactive Avenues creates a force to be reckoned with. Together, these agencies earned ₹1,128 crore in FY24, closing in on WPP’s GroupM, which raked in ₹1,471 crore in CY23.

WPP CEO Mark Read responded to the news with a defiant stance:
“While our peers are distracted and turning inward, we are getting on with the job of delivering exceptional results and value for the world’s leading brands.”

The Giant Closure: Wieden+Kennedy’s Exit from India
Wieden+Kennedy (W+K), one of the world’s most celebrated independent creative agencies, shocked the Indian advertising community with its decision to shut down its Mumbai office and significantly downsize its Delhi operations in October 2024. Known for iconic campaigns like Nike’s Da Da Ding and Old Spice’s Milind Soman commercials, W+K ends a 17-year run in India.

The agency’s past clientele includes major brands like Make in India, IndiGo, Royal Enfield, and Oberoi Hotels, along with more recent projects for Hero Vida, Jindal Steel, Jockey, Hero Cycles, and Clove Dental. Despite its rich history, the agency cited a strategic realignment of its global operations, choosing not to “double down on India.”

This closure highlights the challenges of operating in India’s rapidly evolving advertising market, even for globally renowned players.

Copycats and Controversies
Plagiarism allegations in the advertising industry have always been contentious, and 2024 was no exception.

Wieden+Kennedy vs. Jindal Steel:
Before announcing its closure, W+K found itself in a legal battle with Jindal Steel over a Cannes Lions-winning ad film. W+K sought to be recognized as the original creator of the ad, which had been credited to Early Man Film and Kondurkar Studio. The agency filed a petition in the Delhi High Court claiming intellectual property rights, asserting its role in ideating the ad.
In response, Kondurkar Studio stated that its founder, Amrish Kondurkar, had left W+K in January 2023 and that Jindal Steel approached the studio independently later that year.

Bang In The Middle vs. Medanta:
Independent agency Bang In The Middle accused its former client, Medanta, of using a rejected campaign idea after their partnership ended. In a fiery LinkedIn post, the agency called out Medanta for “resurrecting” and executing the exact same campaign they had previously dismissed:
“The same layouts. The same lines. The same art. The same is everything. The people who once spat on it and threw it out have now had a change of heart.”
The agency didn’t stop at social media, taking legal action to hold Medanta accountable.

Impact on the Advertising Industry
From Omnicom’s consolidation to plagiarism disputes, 2024 has been a year of transformation, challenges, and reckonings for advertising agencies. While consolidation creates stronger global players, closures like W+K’s underscore the complexities of scaling creative operations in India. The copycat controversies serve as a reminder of the ongoing struggle to protect intellectual property in the creative space.

Author: Sania Khan